- India will finally go ahead with a complete ban on crypto investments.
- Existing cryptocurrency investors will have a 3-6 months transition period to liquidate their holdings.
- Cryptocurrency trading platforms in India are anxious about the government’s decision.
- India is one of the most active crypto communities in the world.
India will finally go ahead with a complete ban on crypto investments. In particular, ‘The Cryptocurrency and Regulation of Official Digital Currency Bill 2021’ proposes a complete ban on all private cryptocurrencies in the country.
In line with this, existing cryptocurrency investors will have a 3-6 months transition period. This is when they should liquidate their holdings.
Cryptocurrency isn’t fiat currency backed by the Reserve Bank of India and its usage in all forms will be banned through the new law that will be introduced in Parliament,” according to an anonymous senior Finance Ministry official.
CEO of PAC Global expressed his dismay in this matter,
India banning #cryptocurrencies is crazy.
You can’t stop this movement. Learn to adapt.
— David Gokhshtein (@davidgokhshtein) February 13, 2021
Moreover, this would include a ban on transacting directly via foreign crypto exchanges. However, the ban won’t be enforced overnight. Cryptocurrency investors will be given a few months’ transition time after the implementation of the new law.
India’s New Regulation to Ban Crypto
Specifically, this new law is in accordance with the groundwork of the Indian government to issue a digital currency of its own, aside from completely banning cryptocurrency-related transactions.
As a matter of fact, cryptocurrency trading platforms in India are anxious about the government’s impending decision.
If the government goes ahead with banning all cryptocurrencies, except the one backed by the state, it will not make sense to continue our business in India”, Unocoin co-founder and chief executive officer Sathvik Vishwanath said.
By and large, India doesn’t have a firm regulatory framework for cryptocurrency at present. In retrospect, the cryptocurrency trading ban has been lifted in 2020. Thus, this recent development will likely affect nearly 7 million Indians who hold cryptocurrencies worth over $1 billion.
It is worthy to note that India is one of the most active crypto communities in the world, being the second biggest Bitcoin nation in Asia.